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THE CFO HOTLINE
Answers to the financial questions submitted by small businesses, soloists and founders
Please Note
This is general information, not financial advice, intended for educational purposes only.
Your structure, your situation, your numbers and circumstances are unique to you so what's right for someone else may not always be right for you. Always, always, always get tailored advice before making big decisions, especially if you're relying on insights from Chatty, Claude or Stevo down the pub.
Who do I need on my finance team?
"Have been doing my own financial/bookkeeping for years – but it's all starting to fall apart. With limited budget, and my main issue being Xero not matching what's in my bank account or Shopify reports - who is the key member I need to add to my financial team?"
Answer
The short answer: a bookkeeper — but the right one, set up correctly. ECommerce product businesses have real systems complexity. You're likely running inventory management, possibly a 3PL or warehouse platform, Shopify, Xero — and every one of those needs to talk to the others cleanly. That integration and design work requires a Consulting CFO first and then a bookkeeper to execute to the well-built system. I would resist handing this to your tax accountant even if they’ve said they have a ‘bookkeeping team.’ Not all bookkeeping is created equal and who is driving the work influences the output. Bookkeepers within tax accounting firms will do bookkeeping to make their compliance work easier — not to give you decision-useful data as the business owner. It's a completely different approach. A disciplined “Finance Friday” (just what i call it) rhythm where everything is clean by Sunday night — so Monday morning you're using your numbers, not chasing them is what I’d recommend as bare minimum for you. One clear view of last week's sales, revenue run rate vs target, channel spend vs ROAS, AOV, cashflow for the next 13 weeks. Agile, fast, decision-ready. This weekly rhythm then folds really neatly into your monthly/quarterly BAS process and end of year is a breeze also. That's the unlock. Not more time in the data — less, with more confidence. I’m glad you mentioned budget. You’re running a multi six or seven-figure business. Every hour you spend, as the CEO, on data entry or cashflow stress is an hour you're not closing partnerships, launching products, growing revenue. Your instincts to get this right are spot on, and it will be the investment that frees you up to lead and grow the business profitably.
How do I plan for success properly?
"I'm building a successful solo business but I don't have a budget or anything like that yet - do I need one? How do I get started?"
Answer
You do need a budget - but not in the way you're probably imagining. "Budget" makes most people picture a spreadsheet full of line items they'll fill in once and never look at again. That's not what you need, and it's not where to start. The right starting point is what I call your Real Money number: what does your business need to generate for you to pay yourself what you actually need to live? Not what feels safe to ask for. What you actually need. That number is your first real milestone — and most business owners have never sat down and calculated it properly. Once you have it, everything else gets clearer: your pricing, your capacity, your targets. I have a free resource to calculate your Real Money number (you can find it under Resources in the menu above) it walks you through the calculation yourself, step by step. From there, the next layer is cash flow forecasting. Xero's data shows 60% of businesses don't make it past year three — and the most common reason isn't lack of profit, it's running out of cash before profit shows up in the bank. A simple 13-week rolling forecast tells you what's coming in, what's going out, and whether the gap is manageable. Not complicated. Just not optional. One thing to resist: handing this to someone else to figure out for you. The financial services industry is built on a "give it to us, we'll sort it" model — but a budget you don't understand is a budget you won't use. The financial mastery you build at this stage of business isn't admin. It's the foundation your future growth and take-home pay will sit on. Learn it now, and every decision you make from here gets sharper. If you want to build the whole foundation properly — Real Money number, cash flow forecast, and a profit plan, with a CFO in the room — that's what Profit Blueprint is for (there's a link below to check it out).
How do I get my P&L to give me real insights?
"Operating as a sole trader and basically my business pays or everything for me. I know my revenue is more than convering my costs but I can't even get my bank feed to match in Xero let alone my P&L to give me any insights. On paper, I have made a small profit when in reality I have made a substantial one. I also need to sanity check the way I have set things up."
Answer
Your business finances and personal finances are almost certainly mixed — and that's the root cause of the confusion you're describing. When a sole trader runs personal expenses through the business account, or just runs one bank account for everything, drawing cash as she needs - the data that we rely on for insights becomes completely unreadable. Xero can't reconcile cleanly. Your P&L loses meaning. And you genuinely cannot tell what the business is actually making — which is exactly what you're experiencing. This is the most common setup issue I see, and it's entirely fixable. If your P&L is showing a small profit but you sense it's much larger, personal expenses running through the business will suppress your profit on paper. Once the accounts are separated and books are cleaned up, you'll see the real number — and you'll want to (at least monthly), because that number drives every decision about how and when to pay yourself properly, how to grow your business, how to manage your tax. Clean books means no ATO surprises (no one needs that in their life!). A couple of things for your sanity check - Start with the (free) No-Surprises Cashflow System Quiz (there's a link under Resources in the menu above) — to make sure the fundamentals are in place. Lots of the answers/actions/fixes the quiz gives you can be DIY. Then I’d consider a healthcheck or audit or Diagnostic with a small business financial strategist (ah hem, hello!!) That's the proper CFO-level review of how everything is set up, what's working, what isn't, and exactly what needs to change - not limited to Xero and cashflow, but addressing business model, pricing, offer structure etc. Check it out under Work with Me above.
How do I prevent an ATO Payment Arrangement?
"How much should I put aside for tax and when?"
Answer
Two separate problems — GST and income tax — and they need two separate habits. GST first. If you're invoicing regularly, your GST exposure is building every single week. Don't wait for your BAS to find out what you owe. Every week, as part of (what I call) your Finance Friday rhythm — when your books are reconciled and your numbers are current — check your GST position and move that amount of cash into your dedicated GST savings account. Weekly invoicing means weekly provisioning. If you've done my No-Surprises Cash Flow System Quiz, the answers will help you with this (if not, jump into Resources in the menu above and check it out). Income tax. At minimum, you should be sitting down with your tax agent (otherwise know as your Accountant or your Tax accountant) twice a year: once to prepare for lodging your tax returns, and once for tax planning in April or May. That planning conversation is where your accountant can recommend a monthly provision methodology based on your actual situation — your structure, your income level etc. That's the right answer, and it's specific to you. But if you're waiting on that appointment and you need a starting point right now: set aside 25% of your monthly net profit. It won't be perfect, but it will mean you're not starting from zero when the bill arrives. The goal is simple — the ATO should never surprise you. If it does, your cashflow system (and likely your accountant) isn't working for you.
Should I be charging GST?
"Should I be charging GST? How do I know when to register? Isn't it just more hassle?"
Answer
If you look at the ATO website (no not Chatty or Claude!) the threshold is $75,000 in annual turnover. Once you hit it, registration is mandatory. Below it, it's a choice. But ther is a conversation worth having before you get there. It's surprisingly common for business owners (particularly women) to be advised — by people they trust — to keep their revenue below the GST threshold to avoid the administration. Simpler, they're told. Less hassle. This advice keeps businesses small. It keeps YOU small. It is not in your interest. The real question isn't whether to register. It's whether you've thought through the impact on your pricing before you're forced to register for GST. If you sell directly to consumers — individuals, not businesses — your headline price is your headline price. Your customer doesn't care whether GST is included or not. Which means when you cross the threshold and become registered for GST, you face a choice: add ten percent to your prices and risk disrupting your market, or absorb the ten percent yourself. Neither is a great option if you haven't planned for it. The businesses that handle this well are the ones that started with the end in mind. If you intend to build a business generating more than $75,000 a year (and you should, given that only 12% of women-owned businesses in Australia turn over more than $100,000, and $100,000 in revenue does not deliver financial independence for most people) — then build your pricing around that reality now. Start how you intend to continue. For specific advice on your circumstances, speak to a registered BAS or tax agent.
How do I get my clients to pay me faster?
"I often have to spend time chasing payment for my invoices. How do I get my clients to pay me faster? Is there tech for that?"
Answer
If clients are paying you late, it's usually a systems problem, not a client problem. Late payment almost always traces back to a missing conversation earlier in the engagement — unclear terms, no upfront payment requirement, no payment method locked in before work started. The awkward "where's my invoice" moment at the end is the price of a gap at the beginning. The fix isn't better chasing. It's better onboarding and better systems. When your billing and payment terms are clear from the start — before any work begins — you set the tone for the entire relationship. Clients rise to the standard you establish. And the standard should include: - You don't start work without being paid (I recommend at least 50%). That alone creates immediate incentive. - Payment is via online gateway — Pinch Payments works particularly well for service businesses, with Stripe as a solid alternative. Set it up at engagement, not invoiced and hoped for. Xero's own data shows adding a Pay Now button to invoices halves the payment cycle. Sending bank details and hoping for a transfer is friction you're creating yourself — it annoys clients and gets you paid late. - Automated reminders handle any follow-up. You don't chase manually. You can set these up in Xero. Done properly, all of your invoices land in the first few days of the month without a single awkward conversation. That's not an ambitious goal — it's just what good systems produce. My No-Surprises Cashflow System covers exactly how to set this up — the billing essentials section is where to start. Grab the quiz from Resources in the menu above, and the answers will guide you.
How do I know if my pricing is correct?
"I want to earn more but I am stuck on how to price what I sell - how do I know if my pricing is correct?"
Answer
It makes my eye twitch to say this - there's no exact science for pricing. BUT there absolutely is a way to tell if your pricing is working. And that part is numbers. First — are you a product or service business? The approach is different. For product businesses, pricing sits at the intersection of margin, market and competition. You need to know your true cost of goods, understand what the market will bear, and have a clear view of where you sit competitively. There are many more variables at play and it warrants specific advice for your category. Product pricing strategy is not my area of expertise — but your numbers will tell you quickly whether it's working, or whether you need support. Service businesses are my lane — and here's how to think about it. Start with gross profit. If your gross profit margin (total sales less total costs to deliver the services, divided by total sales) is below 30% — and you've genuinely accounted for your own time in your delivery costs — you are almost certainly underpricing. That's the first flag. Then run what I call the Pricing Fit Check. Step one: take your total revenue for the last three months. Let's say it's $10,000. Step two: count every hour you worked in that period — not just client-facing hours, everything. Admin, marketing, delivery, emails. Say it's 150 hours. Step three: divide. $5,000 ÷ 150 hours = $33 per hour effective rate. Step four: ask yourself what you'd pay someone to do the client-facing parts of your role. A skilled practitioner at $120,000 per year plus super is roughly $65 per hour. That's your replacement cost. Step five: compare. If your effective rate is lower than your replacement cost, you are not running a profitable business. You're running a low-paying job — and an unsustainable one, because there's no room to ever hire, scale, or step back. Now here's the harder conversation. The reason so many service business owners price by the hour or day is simple: that's how it's always been done. But that model has a ceiling baked in. You cannot make more money without spending more time — and most of us are trying to spend less time, not more. Your clients are not paying for hours. They're paying for outcomes, transformation, risk solved. The greater the problem you solve, the higher the price should be. Hesitate on that, discount too quickly, or let a client negotiate you down without reducing scope — and you've told them, and yourself, that your work isn't worth what you said it was. Two things worth remembering: never quote a price without being in control of the scope. And if a client pushes back on price, remove scope instead of discounting your price. The art is knowing the value of the outcomes you deliver. The science is checking the numbers prove it. If you want the 10 Commandments of Value-Based Pricing, email hello@wearepallas.io and we'll send it straight to you.
Do the CGT changes impact me?
"Should I be worried about the federal budget announcement changes to CGT and my business?"
Answer
Honestly? Your focus is better placed on growing a business that pays you well. The Federal Government has confirmed it will maintain existing CGT concessions for small businesses. The changes making headlines — the removal of the 50% CGT discount, replaced with CPI-based indexation of cost base from 1 July 2027 — hit investors and property owners significantly harder than operating business owners relying on small business concessions. Thing is - we don't pay tax if we're not making money. And I'd rather be making money than not making money. The energy you spend worrying about CGT is energy not spent building a business that pays you well and delivers genuine financial independence. Get that right first. That said — if any of this applies to you, it's worth a conversation with your tax adviser: Your business operates through a discretionary trust, or your structure is intertwined with family investments, other businesses, or a partner's affairs. If that's you, and you don't fully understand why everything is set up the way it is — that's the conversation to have. Your adviser should be able to explain your structure in plain English. If they can't, or won't, that's a problem. Ask questions until you genuinely understand. You have every right to fully understand and consent to your own financial structure. Don't defer to anyone — partner, accountant, adviser — without that understanding. Women who don't have a clear picture of their own financial structure are more vulnerable than they need to be. If your current tax adviser makes you feel like you're asking too much, or hides behind jargon — I have a black book of tax agents who actually get it. Email hello@wearepallas.io.
What do I do with my discretionary trust?
"After the budget last week, what is the first thing you would recommend a small business owner who has a discretionary trust structure do?"
Answer
A discretionary trust is a legal structure where a trustee - often a company set up specifically for this purpose, with you and your partner as directors - holds and controls the assets and income of the business. Each year, the trustee decides who receives income from the trust and how much. In practice, it's usually your accountant telling you what to do - which means many business owners are the decision maker on paper without fully realising it, or understanding what that actually means. The reason most people set these structures up is tax. By controlling who receives income each year, you can direct it toward whoever is paying the least tax - a lower-earning spouse, adult children, or other family members - reducing the overall tax bill. Asset protection is usually the other reason: keeping business assets inside a structure rather than in your own name. Both of those benefits have just got significantly more complicated. What the budget actually changes: From 1 July 2027, the 50% CGT discount is being removed. That's the rule that currently halves the tax you pay when you sell an asset - like your business - that you've held for more than 12 months. It's being replaced with a system where only the gain above inflation gets taxed. Whether that's better or worse for you personally depends on your situation - which is exactly why you need advice from a registered tax agent. From 1 July 2028, a minimum 30% tax rate will apply to income flowing through discretionary trusts. The strategy of directing income to lower-tax family members to reduce your overall bill is being wound back significantly. For many people, the primary reason the trust exists in the first place is being legislated away. There is some good news: the government has announced a restructuring window from 1 July 2027, giving businesses three years to move out of a trust structure into something else - like a company for example - without triggering an immediate tax bill. That window matters, and it won't be open forever. The first thing to do: book a meeting with your tax agent (otherwise know as your tax accountant, accountant, or ‘guy that does our tax’) now, not at tax time. Go in with these specific questions: - What does the new minimum 30% tax mean for my trust from 2028 - in dollar terms? - Does it make sense for me to restructure, and if so, what are my options while the restructuring window is open? - What does my trust deed actually say - who is the appointor (the person with ultimate control over the trust), and what happens to that control if my circumstances change? Your tax accountant should be able to answer all of this in plain English. If they can't, or won't, that's your signal to get a second opinion. Email hello@wearepallas.io - I have a black book of awesome tax accountants who genuinely get it, and who understand that your financial independence matters as much as the family tax bill.
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Does my business need its own entity?
"My business runs inside the same discretionary trust as my partner’s/husband's — is that a problem?"
Answer
Possibly - and it's worth understanding exactly what you've got before the budget changes make it more complicated. This structure presumably made sense when it was recommended. The likely motivation was tax: by running both businesses through one trust, your tax accountant could direct income each year to whoever in the family was paying the least tax, reducing the overall bill. Asset protection was probably mentioned too. But the question to sit with is - when this structure was set up, was your business genuinely considered as a serious, independent enterprise with its own risks, its own growth potential, and its own value? Or was it treated as a secondary income stream - a nice addition to the family finances, low risk, not really worth structuring separately? Because that assumption - that your business is some kind of nice little hobby and not that 'legit' - even when unintentional - leads to advice that serves the family group rather than you specifically. And those are not always the same thing. Here's what this structure actually means in practice: You probably can't see your own numbers. When two businesses run through one structure, the financials are combined. There's no clean line between what your business generates and what his does. You can't clearly see your own revenue, your own costs, or what your business is actually worth on its own. That's not a minor inconvenience - you cannot make good decisions, or truly understand what you've built, without that clarity. A because tax accountants are only responsible for the numbers that have happened and what they mean for tax, they're very unlikely to prioritise showing you your numbers as a standalone picture so that you can make proactive decisions in your business. Find out who actually controls the trust. Your trust deed - the legal document that governs the whole structure - determines who holds real power. The key role is the appointor: the person with the ultimate power to remove the trustee and effectively control what happens to everything inside the trust. In practice, most people have never read the deed and don't know who that is. You have every right to know - and every right to be in control of your own business as your own asset. If that conversation has never been had with you directly, that's worth noting and raising directly with your tax accountant. Asset protection may not work the way you think. Trusts are often recommended partly to protect your assets - but that protection doesn't create a wall between things inside the same trust. Your business and his business sit in the same pool. If his business faces a lawsuit, a bad debt, or a significant liability - your hard work and your retained earnings are in that same pool. The asset protection argument, properly examined, actually supports separating the two businesses rather than combining them. According to the recent May 2026 budget announcement, the tax motivation is being wound back. From July 2028, the ability to direct income to lower-tax family members is being significantly reduced. The primary financial reason most of these structures exist is changing. The deal you signed up for - even if it wasn't fully explained to you at the time - is not the deal on the table anymore. What to ask your tax accountant - and what to expect from a good one: A good tax accountant will give you advice about your position specifically - not advice that keeps the family group tidy and the boat unrocked. They will be conscious of the fact that structures like this one, even when set up with good intentions, can create conditions where one person's financial independence and financial visibility is quietly reduced. That's not always intentional. But a good tax accountant names it anyway. Go in and ask: - Can you show me clearly what my business is generating, separately from my partner’s - and what it's worth as a standalone? - Who is the appointor of our trust, what does that mean for control, and is that the right arrangement for me? - Was my business properly assessed as an independent enterprise when this structure was set up - and if not, how do we make sure it is now? - Does this structure still make holistic financial sense given the budget changes, and what would it cost to separate the two businesses while the restructuring window is open? Ask until you fully understand the answers - not the family's answers, yours. You have every right to understand your own financial structure completely and to make an informed decision about whether it still serves you. If your adviser glosses over your individual position, gets suspicious of your questions, or steers the conversation back to what's best for the group - that's a red flag. I have a black book of advisers who understand that your financial independence is not a secondary consideration. Email hello@wearepallas.io if you need to.
Should I buy before EOFY to get more tax deductions?
"About EOFY offers. Is it wise to buy a high-ticket service or product before EOFY. I don't really need it before June 30, but I've been urged to buy it because I will get a tax savings? Is this true?"
Answer
Short answer: almost certainly not. EOFY sales frenzies don't tell you that in most cases, the tax deduction is exactly the same whether you spend the money on 30 June or sometime in July. The financial year changes. The deduction doesn't disappear. Your exact circumstances matter - so ask your tax accountant directly: will I get the same deduction if I buy this after EOFY? In most cases the answer is yes. What changes is the pressure you're feeling right now. And that pressure is a marketing strategy, not a financial one. Here's my rule of thumb for cutting through the EOFY propoganda: If it's something you genuinely need and there's a legitimate sale on - office supplies, consumables, things you'd buy anyway - go for it. A real saving on a real need is a real saving. If you don't actually need it, you are NOT better off spending money just to save tax. Cashflow is a river of gold in a small business. Spending it on something you don't need, to get a deduction you could get later anyway, is not smart financial strategy - it's a panic buy. The same logic applies to the $20,000 instant asset write-off, for example. It's a genuinely useful measure - for businesses that need the asset. Don't buy equipment you don't need just to get a deduction. And while we're here: the creative accounting required to legitimately claim a new car through your business - accountant fees, fringe benefits tax, the actual usage requirements - is rarely worth the effort unless a vehicle is genuinely central to how your business operates (and for those of us running knowledge businesses, its not). If it's not, it's not. The question to always ask before any significant business purchase - EOFY or otherwise: What is the return on this investment? Not "will I get a deduction" - what will this actually generate for my business? A tax deduction returns you a fraction of what you spent. A well-considered investment returns multiples. If the numbers stack up and you want to understand the tax timing, ask your tax accountant. They're the right person for that specific advice. But don't let a countdown timer make the decision for you. One more thing. If the person urging you to buy before EOFY positions themselves as someone who has your financial best interests at heart - a financial adviser, a business mentor with a financial lens - that's worth clocking. Pushing a sale on the basis of a tax saving that applies equally after EOFY is not advice in your best interest. Its a sales tactic serving their interests only. To give everyone the benefit of the doubt: if it's a marketer or a general business coach suggesting you buy before 30th June, they may genuinely believe they're helping you. The EOFY urgency narrative is so pervasive that plenty of well-meaning people repeat it without questioning it. But that's exactly why it's worth questioning yourself - because the people selling to you often haven't.
I’m starting out and have questions about pricing, tax, superannuation and GST.
"I am in early stages of my business. I am pricing my services on the lower end of the market rate because 1) I am new and 2) I am still building authority and credibility. However I am conscious of tax liability and super contributions. Note that I am not registered for GST yet because I am below threshold. What's a pricing advice that you could give me?"
Answer
There are three separate questions here - and it's worth pulling them apart, because they're not as connected as they might feel. On pricing: Being new to business is not the same as being new to your expertise. The instinct to price low while you're building credibility is understandable. It's also, for most women in business, conditioning - not strategy. We are socialised to believe that asking for money is somehow presumptuous. That we need to earn the right to charge well. That pricing high before we've "proven ourselves" is arrogant. None of that is true, and none of it serves you. In actual fact - higher pricing signals credibility. It signals that you are a high-value operator who knows what your work is worth. Clients who are serious about outcomes are not looking for the cheapest option - they're looking for someone they can trust to deliver. Low pricing doesn't build that trust - it undermines it. Your price is a statement, not a question. You don't ask for it. You set it. The right question isn't "what is the market charging and how do I sit below that." It's "what does my pricing need to be to deliver a business that pays me what I need - and what is the value I deliver to the clients I serve?" We've covered how to work that out in detail in “How do I know if my pricing is correct” earlier in this hotline - go back and read that one. On tax and super: These are completely separate from your pricing decision. They feel connected because they all involve money. But your tax liability is determined by your profit - and your super obligations are determined by your business structure. Neither of them is a reason to price lower or higher. On tax: Whatever stage your business is at, the habit to build now is setting cash aside regularly. I call this Finance Friday - a weekly rhythm of getting into your numbers so nothing sneaks up on you. At minimum, once a month, calculate an amount to put aside in cash for your upcoming income tax bill and move it into a separate savings account. The exact percentage to use depends on your structure, your income level, and whether you have other income sources. Your tax accountant is the right person to give you a number that's specific to your circumstances - ask them directly (if you dont have a good one, let me know and i can refer you to some gems). To just get started, perhaps use 25% of your net profit to put aside as cash each month. On superannuation: Whether you're required to pay yourself super contributions depends entirely on how your business is structured. If you operate through a company and are employed by that company, super contributions will likely be required in line with ATO guidelines. If you're a sole trader, you may not be obliged - but you might still want to consider it as part of your broader personal wealth plan. The ATO website is a good starting point for the obligation mechanics. For your specific situation, ask your tax accountant - and please don't rely on Chatty or Claude. They won't get the detail right. If you read "personal wealth plan" and thought - I definitely don't have one of those - you're not alone, and it's not as daunting as it sounds. A Certified Money Coach can help you build one for a very accessible fee, so you can get clear on what your life actually needs your business to deliver. I can refer you if that would be helpful - email hello@wearepallas.io. On GST: Start with the end in mind. You've made a decision for now, and that's fine. But as your business grows toward the $75,000 threshold, the time to think about the pricing implications is before you get there - not when you're forced to register. We've covered this in detail in “Should I be charging GST” earlier in this hotline. Go back and read that one before you hit the threshold. Above all else: your pricing should deliver the business model that delivers you the take-home pay you need. That's the number to start with - not the market rate, not what feels safe to ask for. What do you actually need? Build from there.
I think I need to look for a job.
"How do I know when it’s time to look for a job? Is there a financial signal, a number, a runway length, that tells me it’s time to stop waiting for the business to turn?"
Answer
There is a number. But my guess is you don't have visibility on it yet - and that's actually the more important problem to solve first. The financial signals that tell you whether to stay or go only make sense if you have the foundations in place to read them. Without those, you're not making a data-driven decision. You're making a feelings-driven one - and when things are hard, feelings will almost always tell you to quit before the numbers would. So before we talk about runway, let's talk about what you actually need to have in place. Step one: your Real Money number. This is the revenue your business needs to generate for you to pay yourself what you actually need to live. Not what feels safe to ask for. What you actually need. If you don't know this number, you cannot assess whether your business is failing or simply not yet built to deliver it. Start here - there’s a link to my free Real Money under Resources in the menu above. Step two: a clear picture of how your offers deliver that number. Once you know what you need, the next question is: can your current offer mix actually get you there, and at what volume? How many clients, at what price, delivering what service? This is your revenue strategy - and it's also how you know exactly where to focus your marketing and sales effort. Without it, your marketing is guesswork. With it, you know precisely what pipeline you need to build and what activity will get you there. Step three: a cash flow forecast. This is where the runway question lives. A 13-week rolling cash flow forecast tells you exactly how long you can sustain the current position before something has to change. It turns "I don't know how much longer I can do this" into an actual number of weeks - and that changes everything about how you make decisions. Step four: measuring the numbers that tell you if you're on track. This is where most business owners drop the ball. They measure outcomes - revenue, clients signed - but only after the fact, when it's too late to course correct. You need to be measuring three layers: - Outcomes: revenue for the month, number of clients, average sale value. The results. - Indicators: new leads generated, proposals out, social media following, email list growth. The early warning system - these tell you what's coming before it arrives. - Activities: sales calls completed, social media posts published, newsletters sent, networking events attended. These are the reps in the gym. You cannot control the outcome but you can control the effort that drives it. When you're watching all three layers consistently, you can see exactly where the breakdown is. Not enough revenue? Check your indicators. Not enough leads? Check your activities. It gets very specific, very quickly. Now - the financial signals worth watching: If you have the foundations above in place and your numbers are showing you that revenue is consistently falling short of your Real Money number, your pipeline is not building toward it, and your cash runway is shrinking with no clear catalyst for change - those are real signals worth taking seriously. But hey, there is no shame in getting a part time job and building your business on the side. Do what is right for you and your family. An income floor that takes the desperation out of your sales conversations, that buys you time to build properly, that keeps the lights on while you find your feet - that is a legitimate, intelligent strategy. It is not failure. What I will say is this: if you haven't done the numbers yet, you haven't given your business a fighting chance. Don't make a decision this significant based on how hard it feels right now. Get the data first. This happens to be precisely the work we do together in Profit Blueprint, all in one day. There’s a link above.
Do the CGT changes impact me?
"I’m interested to know how the new CGT affects female founders who want to scale and whether or not I should sell to an interested buyer who wanted to buy me out 18months ago and restart the conversation again, before the changes kick in? I don’t mind paying more tax but I want there to be a return for female founders because the risk/sacrifice to start up a business needs to be worth it."
Answer
First - can we just acknowledge how exciting this is. So many female founders never consider that their business is saleable. Let alone have a buyer approach them. Let alone have it on the roadmap as a deliberate wealth event. This is one of the most important paydays available to a business owner - this is how we build genuine financial independence. So before we get into the detail, take a moment to recognise what you've built. Now. Let's make sure the decision is the right one, made for the right reasons, with all the information. On the CGT changes and whether to rush: get the facts before you move. I can't give you specific capital gains tax advice here - that sits squarely with a registered tax agent who knows your structure, your numbers, and your personal circumstances. What we can tell you is this: the noise around the federal budget changes is loud, and some of it is worth paying attention to. But some of it is hype. Being informed is important. Making a major business decision based on media coverage rather than advice specific to you is not. Here's what to actually do: go to your tax agent and ask them to walk you through at least two scenarios in detail. 1. If you sell before the CGT changes take effect - what does that look like for you specifically, in dollar terms? 2. If you sell after the changes take effect - what does that look like for you specifically, in dollar terms? The answer will depend on your entity structure, how long you've held the business, whether you qualify for small business CGT concessions, and a range of other factors that require close examination. Don't guess. Get the numbers. If you'd like a referral to a tax agent who genuinely gets this - email hello@wearepallas.io. On the sale itself: make sure you're selling for the right reasons. An interested buyer is not, on its own, a reason to sell. It's an opportunity worth examining - and there's nothing wrong with restarting that conversation. But before you do, ask yourself honestly: - Am I considering this because the timing is genuinely right for me - or because someone expressed interest and the budget created a sense of urgency? - What do I actually want from this sale, and does this buyer and this timeline deliver that? - Is my business in the strongest possible position to command the best possible price? If the timing isn't right, it isn't right. A buyer who was interested 18 months ago may well be interested again in 12 months. The best negotiating position is always a business that is performing well and an owner who isn't selling from pressure. On your values statement - you're right, and it matters. The risk and sacrifice of building something from nothing should absolutely be reflected in the return. That's not just a personal opinion - it's the entire argument for why female founders need to be focused on building scalable, profitable, financially independent businesses. The legislation will keep shifting. Budgets will keep changing. The best protection against all of it is a business with strong fundamentals, maximum profitability, and a founder who knows her numbers cold. That's what puts you in the strongest position - whether you sell, when you sell, or whether you decide not to sell at all. Stay focused on the fundamentals. Get specific advice on the tax. And make the decision with all the data - not the headlines.
What should I be measuring?
"What are the key metrics you should be tracking in your business on a monthly basis?"
Answer
Great question - and I'm going to answer it specifically for where you are: a service-based solo operator, probably in your first year or two out of corporate, building something that actually pays you. The mistake most business owners make is tracking too many numbers and understanding none of them. So let's keep this tight. There are three buckets - outcomes, indicators, and activities - and here's exactly what to watch inside each. Outcomes: what your business is actually producing These are the results. They tell you where you are. They don't tell you what's coming - that's what the other two buckets are for. Revenue vs your Real Money number. This is your first and most critical milestone. Your Real Money number is what your business needs to generate for you to pay yourself what you actually need to live. Every month, the first question is: are we hitting it, close to it, or nowhere near it? Everything else flows from this. There's a link to my free Real Money calculator under Resources in the menu above. Monthly recurring revenue. How much of your revenue is locked in and predictable each month - retainers, ongoing engagements, subscriptions? This is the foundation of a sustainable business. The higher this number relative to your total revenue, the less you're starting from zero every month. Cash runway. How many weeks can your business sustain itself at current burn rate? This includes not just your operating cash but your GST reserve, your tax reserve, and ideally a business reserve building toward three months of expenses. If you don't know this number off the top of your head, that's the gap to close first. Service profitability. For each service you deliver, what is your gross profit margin - calculated using the market value of your time, not zero, not a discounted rate. What would you pay someone to deliver this work? Use that. If your margin is below 30%, your prices are too low. Full stop. Your Entrepreneurial Wage. This is the metric I care most about for someone at your stage. Take your net profit before your wage or draw for the month. Divide it by every hour you worked - in the business, on the business, all of it. That's your effective hourly rate as a business owner. Now ask yourself: how does that compare to your last corporate salary broken down to an hourly rate? If it's lower, your business is currently paying you less than employment did. That's not a reason to panic - it's a reason to get specific about what needs to change, and fast. Indicators: your early warning system These tell you what's coming before it arrives. Outcomes are lagging - by the time revenue drops, the problem started weeks ago. Indicators are leading. Watch these and you'll see trouble - or opportunity - well in advance. - Email list size and growth - Social media following and growth - Live sales conversations happening right now - Proposals currently out with prospective clients If these numbers are healthy and growing, revenue will follow. If they're stagnant, that's your signal to act - before the bank account tells you the same thing the hard way. Activities: the reps in the gym You cannot control outcomes. You can control effort. These are the actions that drive everything above - and tracking them keeps you honest about whether you're actually doing the work or just feeling busy. The specific activities depend on your business, but for a service-based consultant they typically include: - Social media posts published - Email newsletters sent - Networking events attended - Speaking engagements delivered - Direct outreach or sales calls made Pick the three to five activities that most directly drive leads and revenue in your business. Track them every week. When your indicators are low, check your activities first - that's almost always where the answer is. One final thought. You don't need a complicated dashboard. You need one simple page with these numbers, updated every month as part of your weekly ‘minimum viable finance rhythm (I call it Finance Friday), so that first thing every Monday you are using your data - not chasing it. That's the difference between a business owner and someone who owns a very stressful job.
Does my business need its own entity?
"My business runs inside the same discretionary trust as my partner’s/husband's — is that a problem?"
Answer
Possibly - and it's worth understanding exactly what you've got before the budget changes make it more complicated. This structure presumably made sense when it was recommended. The likely motivation was tax: by running both businesses through one trust, your tax accountant could direct income each year to whoever in the family was paying the least tax, reducing the overall bill. Asset protection was probably mentioned too. But the question to sit with is - when this structure was set up, was your business genuinely considered as a serious, independent enterprise with its own risks, its own growth potential, and its own value? Or was it treated as a secondary income stream - a nice addition to the family finances, low risk, not really worth structuring separately? Because that assumption - that your business is some kind of nice little hobby and not that 'legit' - even when unintentional - leads to advice that serves the family group rather than you specifically. And those are not always the same thing. Here's what this structure actually means in practice: You probably can't see your own numbers. When two businesses run through one structure, the financials are combined. There's no clean line between what your business generates and what his does. You can't clearly see your own revenue, your own costs, or what your business is actually worth on its own. That's not a minor inconvenience - you cannot make good decisions, or truly understand what you've built, without that clarity. A because tax accountants are only responsible for the numbers that have happened and what they mean for tax, they're very unlikely to prioritise showing you your numbers as a standalone picture so that you can make proactive decisions in your business. Find out who actually controls the trust. Your trust deed - the legal document that governs the whole structure - determines who holds real power. The key role is the appointor: the person with the ultimate power to remove the trustee and effectively control what happens to everything inside the trust. In practice, most people have never read the deed and don't know who that is. You have every right to know - and every right to be in control of your own business as your own asset. If that conversation has never been had with you directly, that's worth noting and raising directly with your tax accountant. Asset protection may not work the way you think. Trusts are often recommended partly to protect your assets - but that protection doesn't create a wall between things inside the same trust. Your business and his business sit in the same pool. If his business faces a lawsuit, a bad debt, or a significant liability - your hard work and your retained earnings are in that same pool. The asset protection argument, properly examined, actually supports separating the two businesses rather than combining them. According to the recent May 2026 budget announcement, the tax motivation is being wound back. From July 2028, the ability to direct income to lower-tax family members is being significantly reduced. The primary financial reason most of these structures exist is changing. The deal you signed up for - even if it wasn't fully explained to you at the time - is not the deal on the table anymore. What to ask your tax accountant - and what to expect from a good one: A good tax accountant will give you advice about your position specifically - not advice that keeps the family group tidy and the boat unrocked. They will be conscious of the fact that structures like this one, even when set up with good intentions, can create conditions where one person's financial independence and financial visibility is quietly reduced. That's not always intentional. But a good tax accountant names it anyway. Go in and ask: - Can you show me clearly what my business is generating, separately from my partner’s - and what it's worth as a standalone? - Who is the appointor of our trust, what does that mean for control, and is that the right arrangement for me? - Was my business properly assessed as an independent enterprise when this structure was set up - and if not, how do we make sure it is now? - Does this structure still make holistic financial sense given the budget changes, and what would it cost to separate the two businesses while the restructuring window is open? Ask until you fully understand the answers - not the family's answers, yours. You have every right to understand your own financial structure completely and to make an informed decision about whether it still serves you. If your adviser glosses over your individual position, gets suspicious of your questions, or steers the conversation back to what's best for the group - that's a red flag. I have a black book of advisers who understand that your financial independence is not a secondary consideration. Email hello@wearepallas.io if you need to.
Should I buy before EOFY to get more tax deductions?
"About EOFY offers. Is it wise to buy a high-ticket service or product before EOFY. I don't really need it before June 30, but I've been urged to buy it because I will get a tax savings? Is this true?"
Answer
Short answer: almost certainly not. EOFY sales frenzies don't tell you that in most cases, the tax deduction is exactly the same whether you spend the money on 30 June or sometime in July. The financial year changes. The deduction doesn't disappear. Your exact circumstances matter - so ask your tax accountant directly: will I get the same deduction if I buy this after EOFY? In most cases the answer is yes. What changes is the pressure you're feeling right now. And that pressure is a marketing strategy, not a financial one. Here's my rule of thumb for cutting through the EOFY propoganda: If it's something you genuinely need and there's a legitimate sale on - office supplies, consumables, things you'd buy anyway - go for it. A real saving on a real need is a real saving. If you don't actually need it, you are NOT better off spending money just to save tax. Cashflow is a river of gold in a small business. Spending it on something you don't need, to get a deduction you could get later anyway, is not smart financial strategy - it's a panic buy. The same logic applies to the $20,000 instant asset write-off, for example. It's a genuinely useful measure - for businesses that need the asset. Don't buy equipment you don't need just to get a deduction. And while we're here: the creative accounting required to legitimately claim a new car through your business - accountant fees, fringe benefits tax, the actual usage requirements - is rarely worth the effort unless a vehicle is genuinely central to how your business operates (and for those of us running knowledge businesses, its not). If it's not, it's not. The question to always ask before any significant business purchase - EOFY or otherwise: What is the return on this investment? Not "will I get a deduction" - what will this actually generate for my business? A tax deduction returns you a fraction of what you spent. A well-considered investment returns multiples. If the numbers stack up and you want to understand the tax timing, ask your tax accountant. They're the right person for that specific advice. But don't let a countdown timer make the decision for you. One more thing. If the person urging you to buy before EOFY positions themselves as someone who has your financial best interests at heart - a financial adviser, a business mentor with a financial lens - that's worth clocking. Pushing a sale on the basis of a tax saving that applies equally after EOFY is not advice in your best interest. Its a sales tactic serving their interests only. To give everyone the benefit of the doubt: if it's a marketer or a general business coach suggesting you buy before 30th June, they may genuinely believe they're helping you. The EOFY urgency narrative is so pervasive that plenty of well-meaning people repeat it without questioning it. But that's exactly why it's worth questioning yourself - because the people selling to you often haven't.
I’m starting out and have questions about pricing, tax, superannuation and GST.
"I am in early stages of my business. I am pricing my services on the lower end of the market rate because 1) I am new and 2) I am still building authority and credibility. However I am conscious of tax liability and super contributions. Note that I am not registered for GST yet because I am below threshold. What's a pricing advice that you could give me?"
Answer
There are three separate questions here - and it's worth pulling them apart, because they're not as connected as they might feel. On pricing: Being new to business is not the same as being new to your expertise. The instinct to price low while you're building credibility is understandable. It's also, for most women in business, conditioning - not strategy. We are socialised to believe that asking for money is somehow presumptuous. That we need to earn the right to charge well. That pricing high before we've "proven ourselves" is arrogant. None of that is true, and none of it serves you. In actual fact - higher pricing signals credibility. It signals that you are a high-value operator who knows what your work is worth. Clients who are serious about outcomes are not looking for the cheapest option - they're looking for someone they can trust to deliver. Low pricing doesn't build that trust - it undermines it. Your price is a statement, not a question. You don't ask for it. You set it. The right question isn't "what is the market charging and how do I sit below that." It's "what does my pricing need to be to deliver a business that pays me what I need - and what is the value I deliver to the clients I serve?" We've covered how to work that out in detail in “How do I know if my pricing is correct” earlier in this hotline - go back and read that one. On tax and super: These are completely separate from your pricing decision. They feel connected because they all involve money. But your tax liability is determined by your profit - and your super obligations are determined by your business structure. Neither of them is a reason to price lower or higher. On tax: Whatever stage your business is at, the habit to build now is setting cash aside regularly. I call this Finance Friday - a weekly rhythm of getting into your numbers so nothing sneaks up on you. At minimum, once a month, calculate an amount to put aside in cash for your upcoming income tax bill and move it into a separate savings account. The exact percentage to use depends on your structure, your income level, and whether you have other income sources. Your tax accountant is the right person to give you a number that's specific to your circumstances - ask them directly (if you dont have a good one, let me know and i can refer you to some gems). To just get started, perhaps use 25% of your net profit to put aside as cash each month. On superannuation: Whether you're required to pay yourself super contributions depends entirely on how your business is structured. If you operate through a company and are employed by that company, super contributions will likely be required in line with ATO guidelines. If you're a sole trader, you may not be obliged - but you might still want to consider it as part of your broader personal wealth plan. The ATO website is a good starting point for the obligation mechanics. For your specific situation, ask your tax accountant - and please don't rely on Chatty or Claude. They won't get the detail right. If you read "personal wealth plan" and thought - I definitely don't have one of those - you're not alone, and it's not as daunting as it sounds. A Certified Money Coach can help you build one for a very accessible fee, so you can get clear on what your life actually needs your business to deliver. I can refer you if that would be helpful - email hello@wearepallas.io. On GST: Start with the end in mind. You've made a decision for now, and that's fine. But as your business grows toward the $75,000 threshold, the time to think about the pricing implications is before you get there - not when you're forced to register. We've covered this in detail in “Should I be charging GST” earlier in this hotline. Go back and read that one before you hit the threshold. Above all else: your pricing should deliver the business model that delivers you the take-home pay you need. That's the number to start with - not the market rate, not what feels safe to ask for. What do you actually need? Build from there.
The Diagnostic
A personalised business audit to give your clarity, direction and confidence.
My eyes on every aspect of your business. A full review of your financials, pricing, offers and operations and a detailed 3-6 month action plan to get your business and your business finances sorted.
For the service-based female founder chasing consistent $20k months who's done feeling scattered, stretched and like every decision is a wild guess.
